As stated in extract 1, it tells us that the goods we import are not made in the UK and so makes it impossible to replace the imports, therefore meaning that we still have to import goods, despite the high prices due to the low exchange rate of sterling. This is partnered with the fact that some suppliers (shown in extract 1) have agreed long term supply contract with cheaper overseas suppliers before the depreciation of the sterling and so they are now paying high prices. This may mean that these suppliers may have to increase the prices of these goods, therefore leading to cost push inflation due to trying to maintain a decent profit margin in the hope the demand for the good does not drop dramatically. However, it is stated that there still may be a large price differential with countries such as China and India, even after sterling's depreciation. On the other hand however, as stated in extract 1, line 8, volume of good imported has also increased by 16% and inflation has continued well above target.
In Chester Zoo’s case, this could be the economic environment, as Chester Zoo are dependent on their customers and the customer generally do not have a lot of money to be able to afford the tickets to get into the zoo as well as pay for the important things they have to pay for, then the zoos money that they earn will fall because lower amounts of people are coming to the zoo. For example, if Chester Zoo offered tickets for half price more people would come as there is more chance of the customers being able to afford them, so the demand would be high. But if Chester Zoo put the ticket prices up then even less customers would come to the zoo because they would probably not be able to afford to pay for the tickets if they could not afford the original price, so therefore the demand would be low. Also if Chester Zoo where to offer a bundle, for example a family package tickets, then there would be more customers so there would be higher demand for the ticket bundle. Shifts in the demand curve While a change in price will cause a movement along the demand curve, some factors actually cause the entire curve to shift.
This could be the opposite and McDonalds will then have low availability and high cost. This means that people spend less and there is a lower demand for goods and services. There will be a decrease in sales revenue and they will also have fewer opportunities to invest in new restaurants. The base rate interest rates have an effect upon the cost of borrowing. The higher the rate the more expensive borrowing would be.
If the company has low skilled employees than they will not be making the most out of their assets because there will be more wastage in production, this can result in an increase in the amount being able to provide to the public. If production levels fall then the company will make less money because they will not be able to see as much to the public as they could if they did have highly skilled workers. Therefore it is important to review the workforce plan constantly to understand when more highly skilled workers will be needed. External The fact that the current market has a global shortage of mining professionals does cause a problem to the company’s long term projects. This is because the company will need highly skilled workers to maximise production without a large range to choose from.
Consequences and solutions to cash flow problems Factor | Why It Causes a Cash Flow Problem | Low profits or (worse) losses | There is a direct link between low profits or losses and cash flow problems. Remember - most loss-making businesses eventually run out of cash | Over-investment in capacity | This happens when a business spends too much on production capacity. Factory equipment which is not being used does not generate revenues – so is often a waste of cash | Too much stock | Holding too much stock ties up cash and there is an increased risk that stocks become obsolete (i.e. it can’t be sold) | Allowing customers too much credit | Customers who buy on credit are called “trade debtors” Offering credit to customers is a good way to build revenue, but late payment is a common problem and slow-paying customers put a strain on cash flow
However the relative economic impacts will be lower for Cumbria and higher for Pakistan. This is because on average buildings and crops are damaged and will affect the economy greater because there is less money available to recover from it. Rescue work and repairs for damaged infrastructure
If other things change, then one cannot directly apply supply/demand analysis. Sometimes supply and demand are interconnected, making it impossible to hold other things constant (Colander, The Limitation of Supply/Demand Analysis, 2010). “In supply/demand analysis, you would look at the effect that fall would have on workers’ decisions to supply labor, and on business’s decision to hire workers. However, there are also other effects (Colander, The Limitation of Supply/Demand Analysis, 2010). “For instance, the fall in the wage lowers people’s income and thereby reduces demand.
Burden cost in test rooms would be charged based on Machine Hours. Tech/Admin pool would be charged at direct labor hours The existing system failed because there was only one rate being used to calculate overhead, and this rate was solely based on direct labor hours. Some products require much more machine hours then direct labor hours. As you can see from the different breakdowns the machine hours are very costly, and as we automate things even further the overhead will not be assigned correctly. Something that requires much more machine hours will appear to have a lower cost, when in fact it could be costing the company a great deal more.
Some of the disadvantages of the piecework pay system is that when the firm is slow at production, the worker will see it in their paycheck. If there isn't enough work then employees are limited to the number of units they can produce. This can bring on a lot of stress to the employee since the paychecks are not the same as they used to be. For example in the HRM incident I know that Bob wants to use his bonus to buy his wife a new car for her birthday. If he doesn't receive the bonus then he is short money for the down payment for the car, therefore he is then left stressed and disappointed to know he does not have the full amount to put down for what he had in mind to give his wife for her
Monopoly often has high barriers due to various reasons. Firstly, when there is very high economies of scale of the existing monopoly firm, the starting cost of potential entrants will be very high as a result, and this is often because of high fixed costs, such as massive initial capital outlay followed by declining LRAC. Secondly, when there is limited and small market size, localized monopoly might arguably be present because the demand from the consumers is very low due to say a small population, which cannot support more suppliers. For example, there will be only one hairdressing shop in a small town because of its small population.